Four Noteworthy Employment Laws for 2023

Posted: January 17, 2023

As the ball dropped on New Year’s Eve, many new employment laws were enacted across the country that will likely have a significant impact on employment and business operations in 2023 and beyond. Here is a rundown of four noteworthy employment laws for 2023:

1. Wage Revisions
 – Many new minimum wage and overtime laws came into play as the calendar turned to 2023. The minimum wage increased in 23 states and nearly 30 cities and counties, resulting in an estimated $5 billion pay increase for an estimated 8.4 million workers. The increases were a direct result of the current high inflation rate in the U.S., which is used to calculate minimum wage rates. There are also numerous new overtime laws for 2023.
   
   
2. Expanding Family Leave Benefits – While the federal level offers no paid leave benefit requirement for employers, things are changing as states and localities expand paid leave laws and this trend is expected to continue. Eleven states have already passed paid family and medical leave laws, including California, Colorado, Connecticut, Delaware, Massachusetts, Maryland, New Jersey, New York, Oregon, Rhode Island, Washington state, and Washington, D.C. These paid family and medical leave laws vary in scope and size, but they provide benefits to workers during medical leave, caregiving leave and parental leave.


   
   
3. Pay Transparency Laws – 
Salary transparency laws continue to pop up in various states and localities across the United States and while they vary in scope and details, the laws dictate requirements for employers to disclose compensation ranges in their job postings or at the request of job candidates. While salary transparency laws have generally had a positive impact on recruiting and hiring, there have been some negative effects, including upsetting existing employees who find out their coworkers’ compensation ranges. The most recent pay transparency laws have been passed in New York City, New York state, California, Rhode Island, and Washington.


   
   4. Independent Contractor Classification – In October 2022, The U.S. Department of Labor (“DOL”) proposed a rule on how to determine if a worker should be classified as a contract worker or a full-time employee. The six factors are: “(1) opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the employer; (3) degree of permanence of the work relationship; (4) nature and degree of control; (5) extent to which the work performed is an integral part of the employer’s business and (6) skill and initiative.” If the answer is “yes” to most of these questions, it is likely that the worker will need to be classified or re-classified as an employee versus a contract worker. As a result of this rule, more workers will become regular employees, meaning thy are eligible for overtime pay, minimum wage, and other employee benefits. The final rule, which could greatly impact the “gig industry,” will be published in May 2023.

If you have questions regarding the ever-changing world of employment laws, please contact our Client Service Ninjas at (877) 360-4636.

Please consult with qualified legal counsel when developing hiring and background screening procedures.